New York: Indian-American entrepreneur Vishal Garg, who made global headlines in 2021 after informing more than 900 employees of their termination during a Zoom call lasting just about three minutes, has been removed as CEO of Better Home & Finance. The company’s board of directors voted to oust Garg, with every director except Garg voting in favour of his removal. Board member Daniel Lewis has been appointed interim CEO.
The decision comes as Better Home & Finance faces significant financial and business challenges. According to the company, it has suffered more than $1.5 billion in losses since 2022. During the same period, the company’s stock price has fallen by more than 90%. Better Home & Finance, which was once valued at several billion dollars, has seen its market valuation fall to only a few hundred million dollars.
The company’s board cited concerns over Garg’s decision-making approach, conduct, credibility and the substantial financial losses incurred by the company. The board also alleged that Garg refused to comply with established shareholder-governance rules. Disagreements over the company’s quarterly financial reporting further intensified tensions between Garg and the directors. According to the board, delays in filing quarterly financial reports contributed to the deterioration of the relationship.
Daniel Lewis, who has been appointed interim CEO, is a member of Better Home & Finance’s board. He has more than 30 years of experience across operations, corporate governance and investment. Lewis is the founder of investment firm Orange Capital and served as CEO of Ascend Fundraising Solutions from 2018 to 2023. His experience is expected to help the company navigate its current leadership and financial challenges.
Garg’s removal has also brought renewed attention to the controversy surrounding his management style in December 2021. Just before Christmas that year, Garg informed more than 900 employees that they were being laid off during a Zoom call that lasted roughly three minutes. The abrupt announcement triggered widespread criticism and raised serious questions about his approach to corporate leadership.
Following the backlash, Garg temporarily stepped away from his position as CEO before eventually returning to lead the company. The mass layoffs remained one of the most controversial episodes associated with his tenure and became a defining moment in discussions about his leadership style.
Nearly five years later, the latest board decision marks a significant change in Garg’s relationship with Better Home & Finance. The dispute between the CEO and the board had expanded beyond management style to include the company’s financial performance, corporate governance and strategic direction.
Garg, however, has challenged the circumstances surrounding his removal. In an interview with Bloomberg following his ouster, he alleged that Daniel Lewis initially gained his trust by praising the company’s strategy before subsequently playing a role in removing him as CEO. Garg described the development as a betrayal of trust.
The conflicting accounts highlight the deep divisions that had developed within Better Home & Finance’s leadership. While the board has pointed to financial losses, governance concerns and issues related to Garg’s management as the basis for its decision, Garg has questioned the manner in which the leadership transition was carried out.
Lewis will now lead Better Home & Finance as interim CEO while the company addresses its financial and governance challenges. His priorities are expected to include improving financial performance, rebuilding investor confidence, strengthening corporate governance and reassessing the company’s long-term business strategy.
For Garg, the decision marks the end of a long and turbulent tenure at Better Home & Finance, the company he played a key role in building. The leadership change comes at a critical stage for the home-finance company as it attempts to recover from significant financial losses, a steep decline in its stock value and continuing questions over its corporate governance.
